India proposes 'simpler' tax regime for foreign cruise lines (updated)

According to news reports, this would eliminate 'double taxation' of cruise operations and exempt income derived from leased vessels.

'Tremendous potential'

'There is tremendous potential for cruise tourism in India,' Sitharaman said in signaling the changes. 'To give a fillip to this employment-generating industry, I am proposing a simpler tax regime for foreign shipping companies operating domestic cruises in the country.'

Seatrade Cruise News reached out to Indian officials and several cruise lines for clarification of the proposals and what they could mean for India's cruise business and will update this story.

Costa Cruises, for one, has been operating in India since 2016 and earlier this year completed a season of domestic sailings on Costa Serena.

MSC Cruises?

Sarbanda Sonowal, minister of ports, shipping and waterways, told The Hindu Businessline MSC Cruises expressed interest in sailing from India starting in early 2025 as a result of the tax reforms and that other lines have been in touch.

Update: In a statement to Seatrade, MSC Cruises said it is 'always looking for new destinations and as India is of potential interest for us, we are analyzing the country’s new budget and its proposed cruise-related tax rules.'

Outreach at Seatrade Cruise Global

Officials from India’s Ministry of Tourism and Ministry of Ports, Shipping and Waterways, together with senior officials from the port authorities of Mumbai, Murmugao and Cochin, attended Seatrade Cruise Global in April.

They touted a raft of cruise-friendly policy initiatives including relaxed cabotage rules, e-visa facility, guaranteed berthing, volume discounts, single e-landing cards and uniform customs and immigration procedures at ports.